Meta Platforms, Inc., formerly known as Facebook, Inc., is one of the biggest and most influential social media and technology companies in the world. Founded by Mark Zuckerberg in 2004, Meta has grown to become a tech titan with products and services including Facebook, Instagram, WhatsApp, Oculus VR, and more. As a public company, Meta’s financials and stock statistics provide useful insights into the growth and valuation of this technology giant.
One important statistic for evaluating any public company is shares outstanding – the number of shares of stock currently held by all shareholders. The number of shares outstanding directly impacts the company’s market capitalization and earnings per share. Monitoring changes in shares outstanding over time can indicate how the company’s capital structure evolves.
For Meta Platforms, analyzing the historical trend of shares outstanding highlights the massive growth of the company from its early beginnings into the social media behemoth it has become. Here is an in-depth look at the historical shares outstanding for Meta Platforms over the company’s first 18 years.
Meta’s Shares Outstanding at IPO in 2012
Facebook went public in one of the biggest and most anticipated IPOs of 2012. On May 18, 2012, Facebook shares began trading on the Nasdaq exchange under the ticker symbol FB. The IPO price was set at $38 per share, valuing the company at over $100 billion dollars at the time of its market debut.
According to Meta’s S-1 filing prior to its IPO, the company had 421 million shares outstanding as of February 2012. This share count included company stock held by executives, employees, and pre-IPO investors. It did not account for the new shares issued during the IPO when Facebook sold 421 million shares at $38 per share, raising around $16 billion in new capital.
So at the time of its Nasdaq listing in May 2012, Facebook had approximately 842 million shares outstanding.
Key Details of Facebook’s 2012 IPO
- IPO Price: $38 per share
- Shares Outstanding Pre-IPO: 421 million
- Shares Sold at IPO: 421 million
- Total Shares Outstanding Post-IPO: 842 million
Surge in Shares Outstanding Post-IPO
In the months and years following its public listing, Facebook’s shares outstanding surged as the company issued new stock to raise capital and make strategic acquisitions. By issuing additional shares, Meta diluted existing shareholders but was able to fuel growth initiatives.
One major driver of Meta’s rising share count was the company’s acquisition of Instagram in April 2012 for $1 billion paid for in cash and stock. The deal valued Instagram at $715 million along with 23 million shares of Facebook stock. This instantly added 23 million shares to Facebook’s total shares outstanding.
Facebook continued issuing shares over the next decade to fund acquisitions of companies like WhatsApp and Oculus VR. Share growth was also driven by new stock issued to employees as compensation and occasional follow-on offerings to institutional investors.
By the first quarter of 2022, Meta’s shares outstanding had risen to 2.91 billion, representing incredible growth from the 842 million shares outstanding post-IPO.
Meta Shares Outstanding Growth Post-IPO
| Year | Shares Outstanding |
| 2012 (at IPO) | 842 million |
| 2015 | 2.2 billion |
| 2018 | 2.8 billion |
| 2022 | 2.91 billion |
Impact of Meta’s Common Stock Repurchases
While new share issuances drove dramatic growth in shares outstanding for many years, Meta also began buying back sizable amounts of its own stock through repurchase programs starting in 2017.
Stock buybacks reduce a company’s total shares outstanding. By repurchasing its own stock, Meta aims to boost its stock price and earnings per share to enhance shareholder value. Fewer shares outstanding mean each remaining share represents a greater portion of company ownership and profits.
From 2017 through 2021, Meta spent over $73 billion to repurchase its common stock. This has partially offset the dilution from new share issuances over the years. In 2021 alone, Meta repurchased $19.2 billion of its stock, reducing total shares outstanding by 4% year-over-year.
Meta remains committed to stock repurchases going forward, authorizing an additional $30 billion in buybacks in 2022. This will continue applying downward pressure on shares outstanding as the company aims to reduce dilution and boost stockholder value. The impact of buybacks can be seen in the flattening growth trajectory of shares outstanding since 2018.
Conclusion
Analyzing the historical trend of Meta Platforms’ shares outstanding reveals the company’s tremendous growth from fledgling startup to global tech leader. From just 421 million shares outstanding pre-IPO in 2012 to nearly 3 billion shares a decade later, Meta leveraged stock issuances to expand its products, user base, and profits.
While acquisitions and capital raises led to substantial share dilution over the years, Meta’s massive stock repurchase program since 2017 has started to reduce total shares outstanding. With over $30 billion authorized for additional buybacks, this trend may continue moderating the growth in shares outstanding as Meta seeks to maximize value for shareholders.
As one of the world’s largest and most influential technology companies, Meta’s financial position and stock statistics will remain important measures to watch. The historical trend and future trajectory of Meta’s shares outstanding will offer insight into the company’s operating strategy and valuation for investors to consider.